taxes

Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)

Who is responsible for this tax?

When compressed natural gas (CNG) and liquefied natural gas (LNG) is sold or delivered into a motor vehicle’s fuel supply tank by a licensed CNG/LNG dealer, the dealer collects the tax. Those who deliver CNG or LNG from their own storage into their own vehicles are also required to be licensed CNG/LNG dealers.

Rates

Fifteen cents ($.15) per gallon.

Deductions

When the CNG and LNG tax is paid on or before the due date, apply the following deduction:

Due Date

Licensed Dealers

Quarterly on 25th day of the month following the end of the calendar quarter:

  • April 25
  • July 25
  • Oct. 25
  • Jan. 25

Yearly (if qualified) on January 25 (Tax Code Sec. 162.362).

Interstate truckers (except IFTA licensed)

Yearly on January 25 for previous year (Tax Code Sec. 162.362).

Penalties and Interest

Penalties
  • A $50 penalty is assessed on each report filed after the due date.
  • If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
  • If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest
  • Past due taxes are charged interest beginning 61 days after the due date.
  • To calculate interest on past due taxes, visit Interest Owed and Earned.

Reporting and Payment Requirements

Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.

Less than $500,000

Select one of these reporting methods:

Select one of these payment methods:

  • Web Electronic Funds Transfer (EFT) or credit card via Webfile (American Express, Discover, Mastercard and Visa)
  • TEXNET
  • Check
$500,000 or more

Select one of these reporting methods:

TEXNET is the only acceptable payment method.

Additional Resources